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Record breaking year for RCAC loan fund

November 26, 2012

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West Sacramento, Calif. — In its fourth quarter ending September 30, RCAC lent more than $18 million to rural communities and closed the largest loan in the organization’s loan fund history. All told, in fiscal year (FY) 2012 RCAC closed 36 loans, which totaled $32,139,221 in eight states. These loans supported 6,130 individual water and wastewater connections for rural citizens, 295 housing units; 1.674 million feet of community facility space; and created or retained 409 jobs.

In the last quarter FY12, RCAC made a loan to connect more than 100 residents to a rural water system, a loan to develop 34 multifamily affordable housing units; three loans that will create 1,634,594 square feet of community facility space; and two loans that will help small businesses thrive.

Highlights for this quarter include:

• $3.7 million gap loan and $8.1 million revolving line of credit to reconstruct the Crescent City Harbor, which suffered major damage following a 2011 tsunami. The loan financed repairs to 1,543,331 square feet of damaged facilities, docks and pilings. This was the largest loan that RCAC has made to date. 
• RCAC provided another $4 million in long-term loans to two charter schools in Utah.
• RCAC lent $245,275 to two small California businesses this quarter, which brings the total for FY12 to $645,583. RCAC’s small business loan program for California businesses launched October 2011 with an investment from the Treasury’s Small Business Lending Fund. The program was recently expanded to include Idaho, New Mexico and Washington.

"We closed our fiscal year with a very strong quarter and we demonstrated flexibility and creativity in delivering vital capital to rural communities, " noted Loan Fund Director Michael Carroll.

RCAC created its Loan Fund in 1988 and was later certified as a CDFI. As of September 30, 2012, RCAC closed 658 loans which totaled $355,755,183 and leveraged more than $1.42 billion for projects in rural communities. These loans supported 57,747 individual water and wastewater connections for rural citizens, 12,133 housing units; 7,211,206 feet of community facility space; and created or retained 13,939 jobs. RCAC currently has 143 loans under management, totaling more than $51.7 million. Additionally, RCAC manages 43 loans totaling more than $52.6 million on behalf of other lenders and investors.

Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities, agricultural workers and community-based organizations in 13 Western states. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing. To find out more about RCAC's Loan Fund products, visit www.rcac.org/doc.aspx?82.

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